A friend of mine bought life insurance two years ago and recently died in a car accident. The insurance company rejected his claim based on the competitive period. What is this clause? When buying life insurance, we have never heard of it. please explain. Is there a way to get insurance?
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The competitive period is the period during which an insurer can challenge a nondisclosure agreement by a policyholder. After this period, the insurer’s right to refuse a claim for non-disclosure is weakened unless the insurer can prove that it was a complete fraud.
An example of non-disclosure is the smoking status of policyholders.
If a person smokes but declares otherwise, he will save premiums in advance. However, if this fact is discovered by the insurance company at the time of the claim, the insurance company reserves the right to reject the claim. You need to understand the fact that insurance companies are disagreeing, perhaps medical facts. And if that fact is disclosed at the proposal stage, will it influence the basic underwriting decision or is it related to the cause of death? If not, you can restate your claim. However, refusal is valid if there is a fundamental link between the medical problem and the cause of death. For example, a smoker has died of lung cancer.
Will the insurance company pay the beneficiary if the policyholder is killed by someone?
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Life insurance covers all types of death. The cause of death can be accidental, natural, or murder. Life insurance only excludes suicide, which is also the first year. In case of death, the full guaranteed amount will be paid to the candidate.
Please note that the document requirements vary depending on the type of death. Invoices and death certificates are general requirements. In the case of natural death, the insurance company will also request a hospitalization report, if any. In the case of an accident or murder death, the insurance company may also require the police’s first information report (FIR) and post-mortem certificate.
Abhishek Bondia is CEO and Managing Director of SecureNow.in.
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